Gift Card Merchants Trends Should Watch in 2025

As we step further into 2025, the gift card industry is rapidly evolving, transforming from a simple retail perk into a strategic business tool across nearly every sector. From retail and restaurants to digital platforms and service industries, gift card merchants are seeing a shift in how consumers and businesses approach gifting.

The old-fashioned notion of a one-size-fits-all gift card is being replaced with dynamic, personalized, and tech-driven solutions. Whether you run a boutique store, a national brand, or a digital platform, staying ahead of trends is vital. This blog explores what’s changing and how merchants can position themselves for success in today’s competitive landscape.

Digital Delivery Becomes the Standard

Digital gift cards are no longer just a convenience; they are quickly becoming the default. Consumers now expect the ability to purchase, send, and redeem gift cards online or via mobile apps, all in real-time. Brands that still rely solely on physical cards risk alienating a growing digital-first customer base.

Offering instant delivery by email or text, compatibility with mobile wallets, and contactless redemption options can help gift card merchants enhance customer satisfaction while reducing operational costs. In addition, digital delivery means merchants can track behavior and engagement, unlocking insights into redemption rates and customer purchasing patterns.

Why Digital Gift Cards Win:

• Email/SMS delivery within seconds

• Easy mobile wallet storage (Apple Pay, Google Pay)

• Contactless redemption at point-of-sale

• Lower production and shipping costs

Personalized Experiences Drive Engagement

Today’s consumers want to give gifts that feel personal, even when buying a gift card. That’s why personalization has become a powerful driver of gift card purchases. This could mean allowing senders to add custom messages, upload photos, choose unique themes, or even record video greetings.

Giving customers tools to personalize their gift cards transforms the experience from transactional to emotional. It’s no longer just a gift—it’s a gesture, a moment, and a memory. Gift card merchants who offer creative personalization options can build deeper connections with their audience and boost sales.

Hot Features to Include:

• Personalized video greetings or voice messages

• Custom card designs with the recipient’s name or photo

• Occasion-based themes (Graduation, Wedding, Thank You, etc.)

• Flexible denominations and scheduled delivery

Closed-Loop Ecosystems Take Center Stage

Retailers and service businesses are increasingly turning to closed-loop gift card systems, which can only be redeemed within their own stores or networks. This keeps revenue in-house and builds brand loyalty.

Whether you’re a local café with loyal regulars or a chain of clothing stores with seasonal traffic, closed-loop gift cards offer you control over how, where, and when gift cards are used. They also integrate well with loyalty programs and promotions, helping gift card merchants drive repeat visits and increased spending.

For example:

• A coffee shop offering a loyalty-backed reloadable card for daily buyers

• A fashion retailer launching seasonal gift card promotions during sales

• A spa offering themed “Relaxation Day” card bundles during holidays

Business Gifting and B2B Markets Expand

Corporate gifting is booming. Businesses are giving out more gift cards than ever—for employee recognition, client appreciation, marketing incentives, referral bonuses, and more. For many companies, gift cards are now part of the standard toolkit for HR and marketing teams.

To meet this demand, gift card merchants must offer bulk ordering, flexible denomination options, and API integrations that allow companies to automate delivery and tracking. Offering branded portals or white-label platforms tailored to B2B buyers can unlock major revenue potential in this fast-growing segment.

Use cases include:

• Employee rewards and bonuses

• Customer appreciation campaigns

• Influencer and affiliate marketing incentives

• Event attendance gifts

Read it also:- The Gift of Growth: Unwrapping the Significance of Gift Cards for Merchants

Omnichannel Integration Becomes Essential

Today’s customers don’t think in terms of online vs. offline—they expect a seamless experience across all touchpoints. That means gift cards should be redeemable in-store, online, through apps, and even via social media platforms.

Merchants that invest in omnichannel solutions ensure that customers can buy and use gift cards wherever they are. Whether it’s scanning a QR code at a restaurant or applying a gift card code during ecommerce checkout, the process should be frictionless. Omnichannel integration also improves tracking, allowing gift card merchants to analyze customer journeys across different platforms.

Must-haves for 2025:

• QR code scanning at checkout

• Instant redemption via ecommerce checkout pages

• Real-time balance updates via SMS or app

• Gift card integration into mobile loyalty apps

AI and Analytics Power Smarter Campaigns

Artificial intelligence is transforming how businesses use data—and gift card programs are no exception. AI tools can analyze buying patterns, forecast redemption trends, and recommend optimal campaign timing.

Using predictive analytics, gift card merchants can launch smarter campaigns that reach the right people at the right time. For example, AI can help identify peak gifting periods or recommend targeting strategies based on customer segmentation. These insights lead to better ROI and more informed business decisions.

Reloadable and Subscription-Friendly Cards Gain Popularity

More consumers are using gift cards for self-use, especially when they come with the convenience of reloadable balances. Others are buying them to access subscription services—like monthly coffee, fitness classes, or entertainment streaming.

• Predict high-redemption periods

• Segment audiences for promotions

• Optimize campaign timing based on user behavior

• Analyze breakage (unredeemed balances) for profit insights

Merchants that enable reloadable cards or tie gift cards into subscription plans offer customers added value and convenience. This recurring usage encourages brand loyalty and gives gift card merchants a steady revenue stream rather than a one-time purchase.

Stronger Security and Fraud Prevention Are Mandatory

Unfortunately, the popularity of gift cards has also made them a target for fraud. Scammers have become increasingly sophisticated, prompting merchants to invest in stronger fraud detection and security systems.

Modern solutions include AI-driven fraud monitoring, encrypted card data, and real-time alerts for suspicious activity. Working with a PCI-compliant payment provider like Motus Financial ensures that merchants are equipped with the tools they need to protect their customers—and their brand reputation.

Use Cases:

• Monthly “coffee club” gift cards

• Reloadable wellness or fitness cards

• Subscription-based prepaid cards for meal kits

Gift Cards Go Global

As online shopping becomes borderless, there’s growing demand for gift cards that can be purchased in one country and redeemed in another. International gifting is especially popular for expats, remote workers, and globally connected families.

To serve global customers effectively, gift card merchants need multi-currency support, localized interfaces, and compliance with regional tax laws. Working with a global payment processor is key to handling international transactions smoothly and securely.

New protections include:

• Real-time fraud alerts

• Machine-learning-based risk scoring

• IP-based validation for gift card claims

• Blockchain technology for transparent tracking

Eco-Conscious Solutions Build Loyalty

Today’s consumers are more environmentally aware than ever. Many are looking for sustainable options—even when it comes to gift cards. This is driving interest in digital-first gift cards, as well as physical cards made from recycled or biodegradable materials.

Offering green alternatives, eco-friendly packaging, or digital-only default options can align your business with customer values. Promoting these efforts can also become part of your brand story, helping gift card merchants stand out in a crowded market.

What cross-border solutions require:

• Transparent multi-currency conversion

• Local redemption flexibility

• Language options for UI and support

• Global payment processor integration

Loyalty Integration Enhances Value

Gift cards and loyalty programs are a perfect match. When combined, they encourage repeat visits and increase average transaction size. For example, customers can earn points when they use a gift card or receive a bonus for purchasing one.

Many POS systems now allow full integration between gift cards and loyalty systems. This gives gift card merchants the power to create promotions that engage both gift givers and recipients, turning first-time buyers into long-term customers.

Eco-friendly strategies:

• Digital-first default with eco-print options only on request

• Cards made from recycled or biodegradable materials

• “Plant a Tree” add-on with every card sent

• Carbon-neutral shipping

Social Media and Influencer Campaigns Drive Awareness

Gift cards are an excellent incentive for social media promotions. Whether it’s a giveaway, referral reward, or influencer marketing campaign, they’re easy to distribute and universally appealing.

Brands are using platforms like Instagram, TikTok, and YouTube to distribute gift cards as part of contests, user-generated content campaigns, and product launches. Gift card merchants can benefit from building social engagement strategies that make their cards part of the conversation.

APIs Connect Everything Seamlessly

Today’s gift card programs must connect with CRMs, email marketing tools, ecommerce platforms, and more. APIs make it possible to sync gift card activity with all your business tools—automatically.

This kind of integration streamlines processes and enhances personalization. For instance, a CRM can trigger a gift card after a customer’s fifth visit, or a marketing tool can automatically send a birthday gift card. For gift card merchants, working with API-friendly providers like Motus Financial ensures these systems work smoothly behind the scenes.

📍 We’re Just a Search Away

Looking to optimize your in-store and online gift card solutions? Motus Financial proudly supports local businesses with personalized payment services right here in your area. When you search for trusted gift card merchants near you, you’ll find us on Google with verified reviews, helpful business hours, and direct contact options. Visit our Google Business Profile to read what clients are saying, get directions to our office, or leave a review after working with us. We’re committed to providing local, secure, and innovative payment solutions that help you grow.

📞 Your Gift Card Solution Starts Here

At Motus Financial, we specialize in helping businesses like yours build smarter, more scalable gift card programs. Whether you’re launching for the first time or upgrading your current system, our team is ready to support your goals with reliable, secure, and fully integrated solutions. Reach out today to schedule a free consultation and discover how our merchant services can help you thrive in 2025 and beyond.

Final Thoughts

The gift card industry is no longer a quiet side category in retail. It’s an essential part of modern business strategy—and it’s evolving fast. From AI-driven analytics and omnichannel experiences to international gifting and personalization, the trends shaping 2025 are creating massive opportunities for growth.

Gift card merchants that stay agile, tech-savvy, and customer-focused will thrive in this new environment. With the right tools, integrations, and payment partners, you can turn gift cards into powerful revenue drivers and brand builders.

Partner with Motus Financial to access the secure, flexible, and future-ready systems you need to succeed in the modern marketplace.